Its from the technical article on transfer pricing:
unsatisfied external demand is ([$8,010,000/0.6] – $8,010,000) = $5,340,000
I don't know whats being done in this part of the calculation.
[$8,010,000/0.6]
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Can you help me with how unsatisfied external demand was calculated ?
5y ago#1Given that they are currently only satisfying 60% of the demand, the full demand must be 8,010,000 / 0.6, and the demand they are not satisfying at the moment is that less the 8,010,000 that they are currently satisfying.
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